Awareness Expert Reviewed

What is ERCOT and Why Does It Matter?

The grid operator that runs 90% of Texas — explained for the people who pay the bills.

By Marcus Chen 8 min read Updated April 2026

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Key Takeaways

ERCOT is the non-profit that operates the Texas power grid.
Texas has its own grid to avoid federal regulation — a deliberate 1930s choice.
Wholesale ERCOT prices set the floor your REP buys at.
Winter Storm Uri (Feb 2021) is why Texas reformed its grid reliability rules.

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ERCOT in one sentence

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Why Texas has its own grid

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How wholesale prices affect your bill

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What happened during Winter Storm Uri

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ERCOT vs. PUC vs. your provider — who does what

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“ERCOT runs the grid; the PUCT writes the rules; your REP sells you the bill. Three different bodies, three different jobs.”

— Marcus Chen, Senior Editor

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The Bottom Line

The grid operator that runs 90% of Texas — explained for the people who pay the bills.

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Marcus Chen

Senior Editor

Sarah covers the Texas deregulated electricity market with a focus on rate analysis, consumer protection, and the math behind every plan. She holds the CFA charter and has 8+ years on the energy desk.

Editorial Standards

How we research and review.

Independently researched. Every claim is verified against primary sources (PUCT, ERCOT, EFLs).
No paid placement. Rankings are never influenced by advertising or referral compensation.
Reviewed by Marcus Chen. Articles are reviewed by certified energy market analysts.

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Sources

ERCOT — Annual Report 2025
PUCT — ERCOT Oversight Filings
Texas SB 3 (2021) — Grid Reliability Act
University of Texas Energy Institute — Uri Post-Mortem

Sources are cited for informational purposes. Data may have been updated since publication.

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Frequently asked questions

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Where do you get your data? +

We source plan and rate data from public REP filings, the Electricity Facts Label (EFL) every plan must publish, and the live ComparePower.com database. Updates flow daily.

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Yes. ChooseMyPower's rankings and recommendations are made independently from any compensation we may receive when you enroll through our partner.

How often is this guide updated? +

We revisit guides on a quarterly basis at minimum, and immediately when material market or regulatory changes happen.

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